Will BTCS Inc. (OTCQB:BTCS)’s Bounce Last?
BTCS Inc. (OTCQB:BTCS) crashed from a dime to a penny in the last few weeks – so could today’s green opening herald its triumphant return to prominence?
While something of the sort is not entirely out of the question, the chances of it happening appear rather slim under the circumstances – because, as far as due diligence can tell, BTCS‘s circumstances are rather dire.
The company’s latest financial report looked like this:
- Cash – $62 thousand
- Total current assets – $126 thousand
- Total current liabilities – $5.4 million
- Quarterly revenues – $199 thousand
- Quarterly net loss – $2 million
Those numbers sort of speak volumes in and of themselves, and what they say doesn’t really present BTCS in a flattering light at all. Still, investors interested in the ticker are encouraged to keep reading in order to get a better grasp on the company’s actual situation.
Unfortunately, BTCS‘s situation doesn’t get better if you dig deeper into its filings. Due to signing a warrant exercise agreement on June 8, 2016 BTCS has become obligated to issue a grand total of 38 million shares of its common stock to third parties. This will put a rather abrupt and horrendous ending to the company’s rather likeable tendency not to bloat its share structure – which is certainly unfortunate. Regrettably, that’s just scratching the surface.
Thanks to the aforementioned agreement, warrant holders now have the right to purchase 10.2 million shares and 17.5 million shares of BTCS common stock for $0.055 and $0.069 a pop, respectively. Additionally, the conversion price of all outstanding junior and senior convertible notes has also been adjusted to $0.055.
This horrific agreement explains why the ticker has crashed so hard in recent days, and why its little resurgence today will probably end up being a dead cat bounce.
